Note 20 - Operating Leases as Lessee

The Company has entered into different operating leases for office premises, office machines and communication satellite equipment for the vessels.

The lease period for the lease agreements varies and most of the leases contain an option for extention.

The lease costs were as follows:

Parent company

Consolidated

2016

2015

(Amounts in USD 1,000)

2016

2015

-

-

Annual lease payment on operational leases

3,042

2,985

As of 31 December 2016, the Company had some commitments relating to lease agreements which fall due as follows:

Parent company

Fall due

Consolidated

-

2017

1,937

-

2018

1,072

-

2019

1,182

-

Total

4,191

Net present value of future commitments relating to lease agreements are calculated to be USD 3,838 thousand for the Company. There are no lease agreements for the Parent. The interest rate in the calculation of net present value is 5%.